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Exercise 9-8 (Part Level Submission) GrouperCorp. purchased a $100,000 face-value bond of Myers Corp. on August 31, 2019, for $104,500 plus accrued interest. The effective
Exercise 9-8 (Part Level Submission) GrouperCorp. purchased a $100,000 face-value bond of Myers Corp. on August 31, 2019, for $104,500 plus accrued interest. The effective yield on the bond is 11.03%. The bond pays interest annually each November 1 at a rate of 12%. On November 1, 2019, Grouper Corp. received the annual interest. On December 31, 2019, Grouper's year end, the fair value for these bonds was 103.7. Grouper sold the bond on January 15, 2020, for $103,400 plus accrued interest. Assume Grouper Corp. follows IFRS. (a) Prepare the journal entries to record the purchase of the bond, the receipt of interest, any adjustments required at year end, and the subsequent sale of the bond. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Compute accrued interest using 1/2 month. Round answers to 0 decimal places, e.g. 5,275) Date Account Titles and Debit Credit Explanation Aug. 31, 2019 FV-NI Investments Interest Receivable Cash Nov. 1, 2019 Cash Interest Receivable Interest Income Interest Expense Dec. 31, 2019 Interest Receivable Interest Income Interest Expense (To accrue interest) PRINTER VERSION (BACK NEXT Cash Nov. 1, 2019 Cash Interest Receivable Interest Income Interest Expense Dec. 31, 2019 Interest Receivable Interest Income Interest Expense (To accrue interest) Dec 31, 2019 Unrealized Gain or loss Bond Investment at Amort (To record fair value adjustment) Jan. 15, 2020 Cash Investment Income or Los Interest Receivable FV-NI Investments Interest Payable Attempts: 0 of 1 used
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